The exemption vide Notification No. 42/2012-ST dated 29-6-2012, to the service provided by a commission agent located outside India to an exporter located in India, become redundant in view of the amendment made in the previous budget, in the definition of “intermediary” in the Place of Provision of Services Rules, 2012 to include intermediary of goods in its scope at par with Intermediary for services.

·Definition of the terms ‘aggregator’and ‘brand name or trade name’ has been specifically inserted;

·Aggregator means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the Aggregator.

As is evident from the nature of transactions there are 3 parties involved under an Aggregator Model:

- The Aggregator;

- Service Provider using the brand name or trade name of Aggregator; and

- Customer

·Service received by Aggregator is brought under Reverse Charge Mechanism.

Under Rule 4: New Registration Process

·Rule 4(9) inserted to provide that the CBEC shall, by way of an order, specify the conditions, safeguards and procedure for registration in Service tax.

In this regard Order No. 1/15-ST dated 28-02-2015, effective from 1-03-2015 has been issued, prescribing documentation, time limits and procedure for registration for single premises. Registration for single premises: within 2 days of filing of application.

New Rule 4C has been inserted after Rule 4B of the Service Tax Rules – Corresponding changes made in Rule 5 thereof:

·Provision for issuing digitally signed invoices, bill or challan has been added along with the option of maintaining of records in electronic form and their authentication by means of digital signatures.

·It is further provided that the conditions and procedure in this regard shall be specified by the CBEC.